Homa Bay Governor Gladys Wanga is facing scrutiny after it emerged that the county’s wage bill rose by more than Sh400 million within a single year, consuming well over the legal ceiling for salaries and wages.
Figures presented before the Senate County Public Accounts Committee (CPAC) show that the county now spends about 55 per cent of its revenue on employee pay, surpassing the 35 per cent limit allowed by law.
Committee chairperson and Homa Bay Senator Moses Kajwang’ questioned the sharp rise in expenditure, warning that it could cripple basic services.
“The wage bill grew from about Sh4.6 billion to about Sh5 billion in one year. What happened?” he asked. He went on to describe the situation as “worrying,” adding, “What is the exact percentage? This is where the risk lies. If 55 per cent of your money is going to employees, then even your payment plans for pending bills sound like a political promise.”
In her defence, Governor Wanga explained that the increase was linked to her administration’s decision to settle long-pending employer obligations.
“We have been looking at that figure seriously, and there has been a major question of employer obligations,” she said.
She noted that payments for gratuity and pensions, which had not been remitted for a long time, were settled during the year, inflating the wage bill.
She further attributed the rise to the introduction of mandatory deductions such as the Affordable Housing Levy, which obligates employers to match workers’ contributions, as well as the hiring of additional staff.
“When you start remitting employer obligations, you will not pay the same as when you were not paying the obligations,” she told the committee.
Despite her explanation, senators cautioned that the county’s wage bill was becoming unmanageable. Regulation 25(1)(a) of the Public Finance Management (County Governments) Regulations, 2015, anchored under Section 107(2) of the Public Finance Management Act, 2012, caps county expenditure on salaries at 35 per cent of total revenue.
According to Wanga, the county executive currently employs 7,183 workers, who consume about Sh457 million in monthly salaries.
However, a recent special audit report on payroll by Auditor General Nancy Gathungu revealed that the wage bill stood at 53 per cent of revenue in the 2023-24 financial year.
The report warned: “The increase in the percentage ratio of compensation of employees to total revenue indicates a growing wage bill, which may be unsustainable in the long term.”
